EX-12 3 ex_12.txt EXHIBIT 12 EXHIBIT 12 AMERICAN EXPRESS COMPANY COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Six Months Ended June 30, Years Ended December 31, 2003 ---------------------------------------------------------------------------- (Unaudited) 2002 2001 2000 1999 1998 ------------------ ------------- ------------- ------------ ------------- ------------- Earnings: Pretax income from continuing operations $ 2,093 $ 3,727 $ 1,596 $ 3,908 $ 3,438 $ 2,925 Interest expense 824 1,846 2,888 2,952 2,178 2,224 Other adjustments 84 174 175 163 151 124 ------------------ ------------- ------------- ------------ ------------- ------------- Total earnings (a) $ 3,001 $ 5,747 $ 4,659 $ 7,023 $ 5,767 $ 5,273 ------------------ ------------- ------------- ------------ ------------- ------------- Fixed Charges: Interest expense $ 824 $ 1,846 $ 2,888 $ 2,952 $ 2,178 $ 2,224 Other adjustments 72 151 170 165 152 129 ------------------ ------------- ------------- ------------ ------------- ------------- Total fixed charges (b) $ 896 $ 1,997 $ 3,058 $ 3,117 $ 2,330 $ 2,353 ------------------ ------------- ------------- ------------ ------------- ------------- Ratio of earnings to fixed charges (a/b) 3.35 2.88 1.52 2.25 2.48 2.24
Included in interest expense in the above computation is interest expense related to the international banking operations of American Express Company (the Company) and Travel Related Services' Cardmember lending activities, which is netted against interest and dividends and Cardmember lending net finance charge revenue, respectively, in the Consolidated Statements of Income. For purposes of the "earnings" computation, other adjustments include adding the amortization of capitalized interest, the net loss of affiliates accounted for at equity whose debt is not guaranteed by the Company, the minority interest in the earnings of majority-owned subsidiaries with fixed charges, and the interest component of rental expense and subtracting undistributed net income of affiliates accounted for at equity. For purposes of the "fixed charges" computation, other adjustments include capitalized interest costs and the interest component of rental expense.